UK Loans
Representative APR Explained: What the UK Loan Rate in the Advert is Really Telling You
It is a regulatory disclosure, not a promise. Knowing what it means stops it being used on you.
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- Legal basis
- CONC rules, 51% of accepted applicants
- What it includes
- Interest plus mandatory fees
- What it excludes
- Late fees, optional insurance
- Your actual rate
- Disclosed before you sign
It is a majority figure, not a quote
The rule exists so adverts cannot lead with a rate almost nobody gets. It still permits a worse rate for up to 49% of accepted applicants.
The pre-contract disclosure is the real number
Before signing you must be given your actual APR and total repayable. That document, not the advert, is the offer.
Watch what sits outside it
Late payment fees and optional insurance are excluded from APR. A competitive APR with a punitive late fee is still expensive for a borrower who slips.
Compare like for like
Same amount, same term, total repayable. Anything else is a comparison of adverts.
VerdictRead the representative APR as a floor for the market, not a ceiling for you. The pre-contract document is the only figure that binds.
FAQ
Is the advertised rate a quote?▾
No, it is a majority disclosure.
Where is my real rate?▾
In the pre-contract credit information.
Can I be refused after seeing the rate?▾
Yes, until you sign.
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